Should You Rent Or Buy In Today’s Market?

Should You Rent or BuyThere have been reports recently that it is better to rent than to buy your home. It’s a tough decision to make, so before you make any decisions based on these reports, it is important to understand the facts.

These reports often assume unrealistic expectations for average households. One report claims that renting is a smarter financial choice because it allows you to invest your money elsewhere. This assumes that renters will take money from the cost of buying a house and invest it in an investment portfolio.

Here’s the problem: Most renters aren’t investing in those properties. Ken Johnson, co-author of the BH&J National Price-to-Rent Index explains:

One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.

It is the wealth you create that makes homeownership one of the most valuable investments you can make. The graph below shows the significant difference in net worth between the average homeowner (and the average renter):

Home Owners Net Worth

Consider the potential to build wealth through homeownership before renewing your rental agreement.

Everybody’s situation is different. If you’re renting now, and wondering if buying a home makes financial sense, let’s have a discussion. The answer may be yes, the answer may be no, the answer may be yes, but not yet. I’ve been doing this for over fifteen years, I am happy to discuss it with you.


 You don’t have to be an expert in getting a home loan – that’s my job. I’ve been doing this so long, I know how to navigate through all of the rules and guidelines to find you the best loan at the best price. Schedule an appointment so we can get you ready to start shopping for your dream home! Or if You’re ready to get the process started, start an application to get the ball rolling. I’ll take it from there.

Jesse Rivera - Mortgage Broker
My name is Jesse Rivera. I’m licensed in the State of California and I live and work in beautiful Long Beach, CA. I can do loans for the whole state of California, but I specialize in SoCal, especially Long Beach, Los Angeles County and Orange county.

And please check out my Google 5-Star Reviews by Clicking here.

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